Backlash to federal bailout grows among voters
Liberals and conservatives sign online petitions and complain to Congress. Some push alternative plans.
Dragomir Kovacevich is a New Mexico Democratic Party activist who lobbies for a green energy economy. Or at least he was, until last week when stock markets nose-dived and Treasury Secretary Henry Paulson hatched a plan to have the government buy bad securities from financial-services firms.
Now, he's an antibailout crusader, using planned meetings with several organizations, including the Congressional Black Caucus, to denounce the $700 billion plan rather than talk up alternative energy. The biggest flaw, according to Mr. Kovacevich, an economist by training, is that after the government buys up bad securities, there's a possibility they will lose more value and be bought back, at a discount, by the same firms that caused the problem in the first place.
"There can't be a flip here," he said. "This just benefits Goldman Sachs: They take the money from your sack and put it into their sack."
Kovacevich joins the swelling ranks of a grass-roots movement aimed at convincing Congress to turn down the Bush administration's plan. The movement crosses party lines. It draws support not only from angry taxpayers but also some economists. And it is beginning to make itself heard in the halls of Congress.
"If it looks like they bail out Wall Street, there's going to be a lot of anger," said a Democratic party staffer in Michigan, who declined to be identified. Michigan is a key swing state in the presidential election.
Page 1 of 4